The health care industry has undergone a great many changes in the past several years: changes in technology, regulations, payment procedures, type of client, and personnel needs. A study attempted to answer the question, "What part will the licensed practical nurse (LPN) have in the health care industry of the future?" In Phase One of the study, data available from the Kentucky State Office of Vocational Education were analyzed to formulate tentative findings on the need for LPNs and the success of the program in the state. The results suggested that the number of LPN graduates in Kentucky and the number of LPNs demanded by industry were about equal. Ninety-five percent of those who complete the program pass the license exam on the first try. Thus, the program has been successful in preparing students to pass the examination and gain employment. In Phase Two of the study, data were provided to address the questions raised in the Phase One report. In order to accomplish this task, a review of pertinent literature regarding nurse staffing both in the health care journals and the economic journals was included. Additionally, a survey of three target employers (hospitals, home health agencies, and nursing homes) was conducted. From the survey, the researchers attempted to ascertain the present and future hiring needs of the industry and the effects on health care cost if the LPN positions were to be eliminated. Also, current LPN students were surveyed to obtain a socioeconomic profile of the LPN student to verify a conclusion from the Phase One report that the Kentucky LPN programs were helping an economically disadvantaged segment of the population. Tables are included. Appendixes consist of survey instruments, support letters, and the Phase One report. (KC)